Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I thank the Minister for his reply. It is early days yet and the alarm bells should not be ringing completely but the trend is a concern. It is not just a trend over one month; we are now looking at data for four months. I accept the point about corporation tax. We have not had any significant months for corporation tax receipts. Later in the year will tell a story in that regard. Corporation tax, as the Minister knows, now accounts for approximately 15% of our tax take. We are dependent on a small number of very large companies. There is one potential vulnerability in that regard.

The income tax issue is intriguing because although the receipts are up 1.2% year on year, we are 3.1% below profile. The unemployment rate is falling, thankfully, so one would expect income tax receipts to be stronger. In simple terms, is it attributable to a miscalculation in regard to the USC? Is there any other explanation that the Minister believes accounts for the trend? It is a concern. That should be acknowledged.

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